USS provides £100 million to UK water utility

University lectureThe Universities Superannuation Scheme (USS) will channel £100 million (€123 million) into a 25-year financing deal with South East Water, a UK water utility, that will provide inflation-linked returns. The pension scheme's investment management subsidiary provided the financing via private placement of an index linked note. USS recently enlarged its infrastructure investment team by hiring two managers. At the time, Mike Powell, head of alternative assets, said the hires reflected “USS's intention to be a significant and successful direct investor within this asset class”. Infrastructure investment is seen as an appealing option for pension schemes because it can offer long-term returns that are linked to inflation. “Our team has spent a significant amount of time building strong relationships with a select number of core UK infrastructure companies,” says Gavin Merchant, senior investment manager for infrastructure at USS. “Our approach is very much focused on forming long term partnerships where we can provide flexible financing.” ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.